Success in Retirement Planning May Start With the “B” Word
Think of budgeting as you would think of a road map. A road map facilitates your trip and makes the outcome more enjoyable. Budgeting should be, at least, one of your financial road maps.
If your goal is to save money for future use (retirement) then the first step is to track current spending for a few months to determine where savings dollars might come from. Please note that a “few months” is a realistic time frame. If one tries to do this exercise with just one month of income and spending there would be no leeway for those emergency or extraordinary items that may pop up short business brands . A real life example will help. In analyzing our family spending I tracked our income and expenditures for a few months and noted that we were spending too much at the grocery store each week. A look back at the receipts and we discovered impulse purchases and grocery and non-grocery items that were not really needed. Thus, if our goal was to save money, then we have found one source of funds to accomplish our savings goals. Does this mean that we can never again splurge on a treat? Absolutely not, but it does signal budget items that needed our attention.
Let’s put this in dollar terms. If you were to find $100.00 per month (just $20 to $25 dollars per week) of off-budget spending and saved that money at a 3% interest compounded annually, in 20 years you would have accumulated $33,211.80. If you skipped 3 of your tall coffees and a muffin ($10.50 combined) each week, at that same 3% interest in 20 years you would add another $15,111.37 to your growing pot of savings. Now you have squirreled away almost another $50,000 in 20 years! Maybe that’s a lot of money, maybe not. If you have no use for an extra $50K and are looking for volunteers to relieve you of that burdensome extra cash, a short list of names comes readily to mind.
Budgeting does not have to be and should not be a straight jacket to your life style. Consider it “awareness therapy”. Your road map shows you where you are going and with a little effort provides you with either the most efficient way to travel or the more scenic route. If you are looking for efficiency, a budget can help you target spending and reduce overspending. If you’re looking for the scenic route, budgeting can help you to be free of the slavery imposed by having too much month left after the money is gone. We should not make budgeting rocket science; it is simple math; tracking income and expenses in hopes of finding a way to balance the two and keep that little extra in your pocket (savings or retirement savings).
You are encouraged to take control of your financial life and budgeting is a solid beginning. No need to fear the “B” word. There now, that didn’t hurt a bit, so stop squirming in your seat.
Some many choices…so little time. That’s what it seems like when it comes to making a decision to launch out in starting a small business of your own. With that comes many obstacles that confront new entrepreneurs, many of which are not always easy to conquer. The number one response to what is the biggest hindrance to starting your business the answer most often replied is MONEY!
Unfortunately, starting a business from the ground up or even diving into an established business, can take a lot of start up capital and not everyone is in a position to risk what they have or don’t have. There is also all the risks, failures and successes that come with the package.
There is a solution to this dilemma if you happen to be one of those who are not rich (yet) or have little start up capital or just no money OR time to spare. Don’t try to “Bag the Elephant” from the start, but build the business up until you reach the financial freedom you desire.
Well, you may be thinking, “What can I do?”. Glad you asked!
First things first is to get a different concept of the traditional business that you may be used to. Forget about looking to the “brick & mortar” establishments, worth all the headaches of finding a good location, having to deal with employees and payroll, taxes, and insurance (as if that really exist in an affordable format anymore!). The list goes on.
Changing the way you envision the business model and breaking free from the traditional methods can make the difference between failure or success. Another good reason to depart from this method is you can save a lot of time and effort and instead of throwing away that time – and money – you can take more calculated, smaller risks. As one saying goes, “How do you eat an elephant?” the answer is “One bite at a time!”
What then can you do to break free from the traditional business model?
The key ingredients that go into making “Success Soup” you will find through the power of the internet. With the business models of affiliate programs, ecommerce, online trading (just to name a few), you can find a way to accomplish your goals and master your dreams. The nice thing about the power of the internet and the business model that is spoken of here are as follows: